Eagle Hospitality gets 90-day exclusivity extension to complete sales

By Sarah Lizee

Olympia, Wash., June 3 – Eagle Hospitality Real Estate Investment Trust unit EHT US1, Inc. obtained a 90-day extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the court extended the plan filing period through Aug. 16 and the solicitation period through Oct. 18.

The company said in its motion that the debtors are in a sale process that is expected to culminate in closings of one or more sales during June.

Eagle Hospitality said that, given that the outcome of the sale process is uncertain, it is “practically impossible” at this time to propose a Chapter 11 plan.

Specifically, only after the sale process has come to a close will it be possible to properly address issues such as the waterfall and allocation of sale proceeds, the company said.

The company also noted that the bar date had not yet passed.

“While the debtors are obviously aware of many of their creditors, such as their bank lenders, it is very possible that claims will be asserted by currently unknown third parties – especially under the circumstances here, including the changing ownership of hotel properties in the years prior to the petition date and the prior landlord-tenant relationships with respect to these properties,” the company said in the motion.

“Without a more thorough picture of the universe of claims it is impracticable for the debtors to formulate a Chapter 11 plan.”

Singapore-based Eagle Hospitality owns a portfolio of corporate, leisure and airport hotels across the United States. U.S. affiliate EHT US1 filed Chapter 11 bankruptcy on Jan. 18 under case number 21-10036.

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